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Introduction & Market Context
Ayvens SA (EPA:AYV), the vehicle leasing and fleet management company of Societe Generale (OTC:SCGLY) Group, reported strong first-quarter 2025 results on April 30, with net income rising 21.5% year-over-year. The company’s shares closed at €8.86 on April 29, near their 52-week high of €8.88, reflecting investor confidence ahead of the earnings release.
The results demonstrate Ayvens’ ability to improve profitability despite ongoing normalization in the used car market, supported by integration synergies and operational efficiency gains. The company continues to make progress on its integration roadmap while securing new business wins across multiple client segments.
Quarterly Performance Highlights
Ayvens reported a net income group share of €220 million for Q1 2025, a significant increase from €181 million in the same period last year. Return on tangible equity (ROTE) improved to 11.0%, up from 9.4% in Q1 2024, while the company’s CET1 ratio strengthened to 13.2%.
The company’s key financial metrics showed substantial improvement across most areas, with margins expanding and cost efficiency improving dramatically. These improvements came despite a continued normalization in the used car sales market.
As shown in the following chart of key financial metrics:
Gross operating income increased to €819 million in Q1 2025, up from €793 million in Q1 2024, supported by higher margins and used car sales results. The company’s underlying cost-to-income ratio improved significantly to 58.0% from 67.7% a year earlier.
The following chart illustrates the consistent growth in gross operating income:
Detailed Financial Analysis
Ayvens’ margins continued their upward trend, reaching 562 basis points in Q1 2025 compared to 522 basis points in Q1 2024. This improvement was driven by a 10.1% increase in underlying margins, supported by revenue synergies of €42 million compared to €20 million in Q1 2024.
The margin trend is clearly illustrated in this chart:
While the used car sales market continues to normalize, Ayvens reported a slower pace of normalization in Q1 2025. The result per unit sold was €1,229 in Q1 2025, down from €1,661 in Q1 2024, but depreciation adjustments per unit increased to €703 from €689 a year earlier.
The following chart shows the used car sales performance:
Operating expenses showed a positive trend, with underlying expenses decreasing by 5.6% compared to Q1 2024. This improvement, combined with higher gross operating income, led to a significant 9.7 percentage point reduction in the cost-to-income ratio.
As shown in the following chart of operating expenses:
The combination of higher gross operating income and lower operating expenses resulted in a strong increase in profit before tax to €316 million in Q1 2025, up from €281 million in Q1 2024. This, along with a stable cost of risk at €23 million, drove the 21.5% increase in net income.
The following chart illustrates the growth in net income:
Integration Progress and Strategic Initiatives
Ayvens reported significant progress in its integration efforts, with legal mergers and IT migrations completed in 11 out of 21 overlapping countries, representing approximately 52% of the total fleet now on a single IT platform per country. The company also implemented its target operating model for corporate functions and IT, creating a simpler, integrated, and more efficient organization.
Integration synergies are ramping up according to plans, reaching €61 million in Q1 2025. The company has made substantial progress in various integration KPIs, including office relocations, insurance scheme implementation, and procurement supplier terms alignment.
In terms of fleet and earning assets, Ayvens reported total earning assets of €53.5 billion as of March 2025, slightly up from €52.7 billion a year earlier. The company’s total fleet stood at 3,246 thousand vehicles, compared to 3,375 thousand in March 2024.
The following chart shows the fleet composition and powertrain mix:
Notably, there has been a significant shift in the powertrain mix, with plug-in hybrid electric vehicles (PHEV) increasing to 31% from 19% a year earlier, while internal combustion engine (ICE) vehicles decreased to 27% from 44%.
Ayvens continues to build a sustainable and profitable growth path by addressing all client segments with specific approaches, scaling existing products like LCV, MCL, and insurance, and developing retail clients through partnerships with 18 OEMs. The company secured several large client wins, including Constuctel, Ferrero, Veolia, and Novartis (SIX:NOVN), and extended its partnership with Volvo (OTC:VLVLY) to 7 new countries.
The company’s commitment to ESG (Environmental, Social, and Governance) principles has received strong recognition from major ESG agencies, as shown in the following image:
Forward-Looking Statements
Ayvens’ capital position remains strong, with risk-weighted assets decreasing to €56.7 billion in March 2025 from €59.0 billion in December 2024. The CET1 ratio improved to 13.2%, providing a comfortable buffer of 385 basis points over the Maximum Distributable Amount (MDA).
The following chart illustrates the improvement in capital ratios:
Looking ahead, Ayvens plans to continue its integration efforts, with a focus on completing legal mergers and IT migrations in the remaining overlapping countries. The company also expects to continue benefiting from synergies while closely monitoring asset risk.
The company has scheduled its Shareholders’ meeting for May 19, 2025, with dividend detachment on May 26 and payment on May 28. Ayvens will report its Q2 and H1 2025 results on July 31, 2025.
Overall, Ayvens’ Q1 2025 results demonstrate the company’s ability to improve profitability and operational efficiency while successfully implementing its integration plan and navigating the normalization of the used car market.
Full presentation:
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